Help with UK Citizenship or Procedures

Hello,I have a SA passport with an Indefinite Leave to Remain visa for the UK (which I received in 2008). My daughter was born in London in 2003 and has an EU passport. Although I left in 2009 and returned this year in February (due to being made redundant back then and found work outside of the country), I would still like to apply for my British citizenship.

My partner and I want to relocate to Spain. He is a first generation citizen, with a British passport and has residency for Spain.he has gone to Spain to set up home however As my passport expires on the 3 December 2013, I am unable to apply for a Schengen visa to travel to see him or for any other countries in the EU.

Can you advise me as to what I can do? Would I still be able to apply for my British citizenship/passport now so that I can be with him? My daughter lives with her father in London now and I naturally don't want to be restricted either way...